India likely to be $6 trillion economy in 10 years: Morgan Stanley

Posted by Daily Shipping Times on 29-09-2017        Tweet

MUMBAI: India is expected to be a USD 6 trillion economy -- the third largest in the world -- in the next 10 years, majorly helped by digitisation, says a report.

According to global brokerage Morgan Stanley, India's digitisation drive would provide a boost of 50-75 basis points to GDP growth in the coming decade.

"We estimate that digitisation will provide a boost of 50-75 basis points to GDP growth and forecast that India will grow to USD 6 trillion economy and achieve upper-middle income status by by 2026-27," Morgan Stanley head India research and India Equity Strategist Ridham Desai said here.

"We expect India's real and nominal GDP growth to compound annually by 7.1 per cent and 11.2 per cent respectively over the coming decade," he added.

Citing the report 'India's digital leap - The multi-trillion dollar opportunity' released recently, Desai said apart from some short term teething problems including implementation of GST, there is scope for visible shifts in economic activity starting in 2018 which would eventually lead India to be the top five equity markets in the world with a market capitalisation of USD 6.1 trillion and the third-largest listed financial services sector around the globe with a market cap of USD 1.8 trillion by 2027.

India's consumer sectors is also likely to add about USD 1.5 trillion over the next ten years.